Question
Carly bought a new house for $125,000. The value of the house appreciates approximately 3.5% each year. What will be the value of the house after 10 years?
Answers
GPT 3.5
To calculate the value of the house after 10 years with an annual appreciation rate of 3.5%, we can use the formula for compound interest:
A = P(1 + r)^t
Where:
A = final value of the house after t years
P = initial value of the house (purchase price) = $125,000
r = annual appreciation rate = 3.5% or 0.035
t = number of years = 10
Plugging the values into the formula:
A = $125,000(1 + 0.035)^10
A = $125,000(1.035)^10
A = $125,000(1.419068)
A = $177,383.50
Therefore, the value of the house after 10 years will be approximately $177,383.50.
A = P(1 + r)^t
Where:
A = final value of the house after t years
P = initial value of the house (purchase price) = $125,000
r = annual appreciation rate = 3.5% or 0.035
t = number of years = 10
Plugging the values into the formula:
A = $125,000(1 + 0.035)^10
A = $125,000(1.035)^10
A = $125,000(1.419068)
A = $177,383.50
Therefore, the value of the house after 10 years will be approximately $177,383.50.